from a leader in japan to a winner worldwide - ir …€¦ · · 2016-01-14from a leader in japan...
TRANSCRIPT
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From a Leader in Japan to a Winner Worldwide
Representative Director, President & CEO Shiseido Group CEO
Masahiko Uotani Dec. 3rd, 2015
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2
1 About Myself
3 VISION 2020
2 Shiseido Overview
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4
My Learnings
Brand value is an intangible asset, building total corporate value,
sustainable growth and high ROE.
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Key Success Factors Strategic marketing for consumer relationships “Think Global, Act Local” Diversity as the source of innovation Leadership to create high performance and
a winning culture Execution! Execution! Execution!
Brand value is an intangible asset, building total corporate value, sustainable growth and high ROE.
But, I was going to enjoy my retirement in… “The world belongs to the discontented.”
My Learnings
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…And,
Decided to become CEO of Shiseido
My mission & 覚悟 To make Shiseido into
a leading global marketing company
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1 About Myself
3 VISION 2020
2 Shiseido Overview
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Shiseido Heritage
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Established as a pharmacy in 1872
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Shiseido Company Mission
To inspire a life of beauty and culture
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Shiseido Business Portfolio
Cosmetics
Fragrances
Retail
Foods
Healthcare
Professional Restaurants 11
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Shiseido Regional Portfolio
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Americas
133
Europe
109
China
115 Asia
55
Japan
366
Billions of yen FY Ended March 2015
Presence in 120 countries
53% of sales overseas
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Source (Global):WWD BEAUTY INC’S ANNUAL RANKING OF THE WORLD’S BIGGEST BEAUTY COMPANIES (April 2015) (Japan):The Nikkei (August 13, 2015)
1 L’ORÉAL 2 UNILEVER 3 P&G 4 ESTÉE LAUDER 5 SHISEIDO
Shiseido as a Leading Japanese Company
1 SHISEIDO 2 KANEBO 3 KOSE 4 POLA ORBIS 5 KAO
Japan Global
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Shiseido Brands
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What Has Made Shiseido Competitive
*the International Federation of Societies of Cosmetic Chemist
Technology/Quality
Won 23 IFSCC* Awards
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What Has Made Shiseido Competitive
Omotenashi as consumer touch point
22,400 Beauty Consultants worldwide
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CSR activities that are unique to Shiseido
Environment Culture Women and Beauty
What Has Made Shiseido Competitive
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Market share
Challenges
Regain Japan business growth
Dramatically increase global business profitability
Rejuvenate Shiseido
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0
2
4
6
8
10
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Japan Global (OP%) 1980 2014
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2010 2015
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1 About Myself
3 VISION 2020
2 Shiseido Overview
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Understanding Real Issues
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Key Issues
Vicious cycle
Increase trade rebates (sell-in) Weak
brands/innovation
Sales decline
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Decline consumer sales (sell-out)
Increase retail inventory
Break the chain!
Reduction of consumer A&P and R&D investments
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2015 2020
Sales over
¥1 trillion
Operating income
over ¥ 100 bil.
CAGR 3~5%
CAGR 5~7%
VISION 2020 Goal
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A winner worldwide
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VISION 2020 Roadmap
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Regain Japan growth Structual reform for
global profitability Brands via marketing
and innovation Global organization Efficiency/
Cost reduction
2018-2020 New Strategy to Accelerate Growth
2015-2017 Rebuild Foundation
New brands via M&A Enter emerging
countries Expand business
portfolio Strong talent and
leaders Keep delivering
efficiency
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Marketing Innovation
Key Pillars of VISION 2020
BRAND VALUE
People/Talent development
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Japan
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Brand renewals/relaunches/rationalization Brand manager appointment Increased investment in consumer
marketing Seamless organization
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Restoring Growth Momentum
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1H 2014 2H 2014 April May June July Aug Sept Oct
In-store sales growth vs LY
(%)
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Capturing Inbound Demand
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Numbers of tourists (Jan-Sep 2015)
1. China 4.3 mil. +113%
2. Korea 3.2 mil. +44%
3. Taiwan 3.1 mil. +31%
Contributing to growth of total revenue
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Global Business Update in 2015
Working Not working Strong prestige
brands Asia/Travel Retail
momentum
China local brands Unsustainable Bare
Escentuals growth
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China Business Reforms
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Cost reduction
Brand portfolio
Store sales focus
BC/BA produc-
tivity
Digital market-
ing Local- ization
Reengi- neer
business
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Mega Trends Are Changing Consumer Lives
Globalization Urbanization Informatization
Passive → “Active Consumer”
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DM Center Of Exellence in NY
Own website (watashi+)and web counseling
Cross-border e-commerce
Digital Marketing and E-Commerce
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Strengthening Digital Communication with Young Consumers
Video posted on YouTube “High School Girl? The Secret of Make Up High School Girls”
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Travel Retail Opportunities
Increase duty-free counters and BC
Airport advertising and promotion
Dedicated product development
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2017 2020 2015 2016 2014
~
~
Cumulative increase of more than ¥100 billion over three years
Increase brand value
Expand Marketing Investment
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Europe
China
Southeast Asia
Japan
Americas
# of researchers: from 1,000 to 1,500 R&D investment: from 1.8% to 2.5%
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Strengthen R&D Capabilities
Global Innovation Center
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Europe Americas
Generate ¥30-40 billion in 2017, compared with 2014
2.5-5.0 6.0-8.0
(Billions of yen)
China
0.5-1.0
Asia
15.0-18.0
6.0-8.0
Structural Reform to Decrease Costs
Japan
36
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Matrix Organization to Achieve “Think Global, Act Local”
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Europe Americas
Japan
Global Centers of Excellence
Fragrance
Skincare
Makeup/Color
Drive category innovation
Digital
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Diversity to Build Management Capability
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Global Management Team
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President, Shiseido Japan Toru Sakai
President, Shiseido Asia Pacific Jean-Philippe Charrier
President and CEO, Shiseido Americas Marc Rey
President and CEO, Shiseido Europe, the Middle East and Africa Louis Desazars
President , Shiseido Global Travel Retail Philippe Lesne
President and CEO Shiseido Group CEO Masahiko Uotani
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覚悟 Strong dedication and commitment
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In this document, statements other than historical facts are forward-looking statements that reflect our plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause actual results and achievements to differ from those anticipated in these statements.